I have an BOM B0001 which contains a sub-BOM B0002, the B0002 is kind of subcontracted work that should be released to the vendor . for the component Item(M0002) that related to the sub-BOM B0002 is configured "Production" as the default order settings.
Item Number: M0001, BOM Number: B0001
Item number: M0002 , BOM Number: B0002
Case 1:
M0002 default order settings is "Production", BOM line type "Vendor"
a default production order create automatically for M0002 when i estimate the production order, and the production order type is Vendor.
Case 2:
M0002 default order setting is "Production", BOM line type "Pegged Supply"
a default production order create automatically when i estimate the production order, and the production order type is Standard.
But when i went through these two production order, i cannot find any difference from the process point of view, so what's the point these two line types?
Notes:
i found some specifications from the Microsoft Training Material, but still confusing since the process are almost the same.
Subcontractor Work Type Production
If a production order, or part of a production order, is satisfied by a
subcontractor, and raw materials should be released to the vendor, the produced
item must have a BOM, with the line type Pegged supply.
Subcontractor Work Type Production
If a sub-BOM is outsourced to a subcontractor, this sub-BOM must use the
Vendor line type, and all operations in the route must use a resource of the type
Vendor so that the subcontractors capacity can be included in the schedule.
If the schedule does not have to use the subcontractor's capacity, and if a specific
delivery time is agreed upon instead, the route does not have to be attached to the
BOM item; it can alternatively specify the delivery time in days directly on the
Item. When you are estimating the higher level production from then on, a
pegged production order of the type Vendor is created automatically.